FILE s487.is
104th CONGRESS
1st Session
To amend the Indian Gaming Regulatory Act, and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 2 (legislative day, February 22), 1995
Mr. McCain (for himself and Mr. Inouye) introduced the following
bill; which was read twice and referred to the Committee on
Indian Affairs
A BILL
To amend the Indian Gaming Regulatory Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Indian Gaming Regulatory Act
Amendments Act of 1995'.
SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.
The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.) is
amended--
(1) by striking the first section and inserting the following
new section:
`SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
`(a) Short Title: This Act may be cited as the `Indian Gaming
Regulatory Act'.
`(b) Table of Contents: The table of contents for this Act is as
follows:
`Sec. 1. Short title; table of contents.
`Sec. 2. Congressional findings.
`Sec. 3. Purposes.
`Sec. 4. Definitions.
`Sec. 5. Establishment of the Federal Indian Gaming Regulatory
Commission.
`Sec. 6. Powers of the Chairperson.
`Sec. 7. Powers and authority of the Commission.
`Sec. 8. Regulatory framework.
`Sec. 9. Advisory Committee on Minimum Regulatory Requirements and
Licensing Standards.
`Sec. 10. Licensing.
`Sec. 11. Requirements for the conduct of class I and class II
gaming on Indian lands.
`Sec. 12. Class III gaming on Indian lands.
`Sec. 13. Review of contracts.
`Sec. 14. Review of existing contracts; interim authority.
`Sec. 15. Civil penalties.
`Sec. 16. Judicial review.
`Sec. 17. Commission funding.
`Sec. 18. Authorization of appropriations.
`Sec. 19. Miscellaneous.
`Sec. 20. Dissemination of information.
`Sec. 21. Severability.
`Sec. 22. Criminal penalties.
`Sec. 23. Conforming amendment.
`Sec. 24. Definition of financial institutions.';
(2) by striking sections 2 through 19 and inserting the
following new sections:
`SEC. 2. CONGRESSIONAL FINDINGS.
`The Congress finds that--
`(1) Indian tribes are--
`(A) engaged in the operation of gaming activities on
Indian lands as a means of generating tribal governmental
revenue; and
`(B) licensing such activities;
`(2) clear Federal standards and regulations for the conduct
of gaming on Indian lands will assist tribal governments in
assuring the integrity of gaming activities conducted on Indian
lands;
`(3) a principal goal of Federal Indian policy is to promote
tribal economic development, tribal self-sufficiency, and
strong tribal government;
`(4) while Indian tribes have the right to regulate the
operation of gaming activities on Indian lands if such gaming
activities are--
`(A) not specifically prohibited by Federal law; and
`(B) conducted within a State that as a matter of public
policy permits such gaming activities,
Congress has the authority to regulate the privilege of doing
business with Indian tribes in Indian country (as defined in
section 1151 of title 18, United States Code);
`(5) systems for the regulation of gaming activities on
Indian lands should meet or exceed federally established
minimum regulatory requirements;
`(6) the operation of gaming activities on Indian lands has
had a significant impact on commerce with foreign nations,
among the several States and with the Indian tribes; and
`(7) the Constitution vests the Congress with the powers to
regulate Commerce with foreign Nations, and among the several
States, and with the Indian Tribes, and this Act is enacted in
the exercise of those powers.
`SEC. 3. PURPOSES.
`The purposes of this Act are--
`(1) to ensure the right of Indian tribes to conduct gaming
activities on Indian lands in a manner consistent with the
decision of the Supreme Court in California et al. v. Cabazon
Band of Mission Indians et al. (480 U.S. 202, 107 S. Ct. 1083,
94 L. Ed. 2d 244 (1987)), involving the Cabazon and Morongo
Bands of Mission Indians;
`(2) to provide a statutory basis for the conduct of gaming
activities on Indian lands as a means of promoting tribal
economic development, self-sufficiency, and strong Indian
tribal governments;
`(3) to provide a statutory basis for the regulation of
gaming activities on Indian lands by an Indian tribe adequate
to shield such activities from organized crime and other
corrupting influences, to ensure that an Indian tribal
government is the primary
beneficiary of the operation of gaming activities, and to ensure
that gaming is conducted fairly and honestly by both the operator
and players; and
`(4) to declare that the establishment of independent Federal
regulatory authority for the conduct of gaming activities on
Indian lands and the establishment of Federal minimum
regulatory requirements for the conduct of gaming activities on
Indian lands are necessary to protect such gaming.
`SEC. 4. DEFINITIONS.
`For purposes of this Act, the following definitions shall apply:
`(1) Applicant: The term `applicant' means any person who
applies for a license pursuant to this Act, including persons
applying for a renewal of a license.
`(2) Advisory committee: The term `Advisory Committee' means
the Advisory Committee on Minimum Regulatory Requirements and
Licensing Standards established under section 9(a).
`(3) Attorney general: The term `Attorney General' means the
Attorney General of the United States.
`(4) Chairperson: The term `Chairperson' means the
Chairperson of the Federal Indian Gaming Regulatory Commission
established under section 5.
`(5) Class i gaming: The term `class I gaming' means social
games played solely for prizes of minimal value or traditional
forms of Indian gaming engaged in by individuals as a part of,
or in connection with, tribal ceremonies or celebrations.
`(6) Class ii gaming:
`(A) In general: The term `class II gaming' means--
`(i) the game of chance commonly known as bingo or
lotto including, if played in the same location,
pull-tabs, punch boards, tip jars, instant bingo, and
other games similar to bingo (whether or not
electronic, computer, or other technologic aids are
used in connection therewith)--
`(I) which is played for prizes, including monetary prizes, with
cards bearing numbers or other designations;
`(II) in which the holder of the card covers such numbers or
designations when objects, similarly numbered or designated, are
drawn or electronically determined; and
`(III) in which the game is won by the first person covering a
previously designated arrangement of numbers or designations on
such cards; and
`(ii) card games that--
`(I) are explicitly authorized by the laws of a State; or
`(II) are not explicitly prohibited by the laws of a State and
are played at any location in the State, but only if such card
games are played in conformity with any such laws (including
regulations) of the State regarding hours or periods of operation
of such card games or limitations on wagers or pot sizes in such
card games.
`(B) Exclusions: The term `class II gaming' does not
include--
`(i) any banking card games, including baccarat,
chemin de fer, or blackjack (21); or
`(ii) gambling devices, as defined in paragraph (11),
except for any class II game that is played under
subparagraph (A)(i) with technologic aid that has been
approved by the Commission.
`(C) Treatment of certain games: Notwithstanding any
other provision of this paragraph, the term `class II
gaming' includes those card games played in the State of
Michigan, the State of North Dakota, the State of South
Dakota, or the State of Washington, that, on or before May
1, 1988, were actually operated in such State by an Indian
tribe, but only to the extent of the nature and scope of
the card games that were actually operated by an Indian
tribe in such State on or before such date, as determined
by the Commission (as defined in paragraph (8)).
`(7) Class iii gaming: The term `class III gaming' means all
forms of gaming that are not class I gaming or class II gaming.
`(8) Commission: The term `Commission' means the Federal
Indian Gaming Regulatory Commission established under section 5.
`(9) Compact: The term `compact' means an agreement relating
to the operation of class III gaming on Indian lands entered
into by an Indian tribe and a State, that is approved by the
Secretary, or an agreement relating to the operation of class
III gaming that is negotiated by an Indian tribe and the
Secretary, and approved by the Secretary.
`(10) Electronic, computer, or other technologic aid: The
term `electronic, computer, or other technologic aid', in
connection with class II gaming, means a device, such as a
computer, telephone, cable, television, satellite, or bingo
blower, that, when used--
`(A) is not a game of chance or a gambling device;
`(B) merely assists a player or the playing of a game; and
`(C) is operated according to applicable Federal
communications law.
`(11) Electronic or electromechanical facsimile: The term
`electronic or electromechanical facsimile' means any gambling
device, as defined in paragraph (12).
`(12) Gambling device: The term `gambling device' means--
`(A) any gambling device, as defined in section 1(a) of
the Act of January 2, 1951 (commonly referred to as the
`Gambling Devices Transportation Act') (64 Stat. 1134,
chapter 1194; 15 U.S.C. 1171(a)), including any electronic
or electromechanical facsimile; and
`(B) does not include a technological aid to class II
gaming that is approved by the Commission.
`(13) Gaming-related contract: The term `gaming-related
contract' means any agreement for an amount of more than
$50,000 per year--
`(A) under which an Indian tribe or an agent of any
Indian tribe procures gaming materials, supplies,
equipment, or services that are used in the conduct of a
class II or class III gaming activity, or
`(B) financing contracts or agreements for any facility
in which a gaming activity is to be conducted.
`(14) Gaming-related contractor: The term `gaming-related
contractor' means any person who enters into a gaming-related
contract with an Indian tribe or an agent of an Indian tribe,
including any person with a financial interest in such contract.
`(15) Gaming service industry: The term `gaming service
industry' means any form of enterprise that provides goods or
services that are used in conjunction with any class II or
class III gaming activity, in any case in which--
`(A) the proposed agreement between the enterprise and a
class II or class III gaming operation, or the aggregate of
such agreements is for an amount of not less than $100,000
per year; or
`(B) the amount of business conducted by such enterprise
with any gaming operation in the 1-year period preceding
the effective date of such agreement was not less than
$250,000.
`(16) Indian lands: The term `Indian lands' means--
`(A) all lands within the limits of any Indian
reservation; and
`(B) any lands--
`(i) the title to which is held in trust by the
United States for the benefit of any Indian tribe; or
`(ii) the title to which is--
`(I) held by an Indian tribe subject to a restriction by the
United States against alienation;
`(II) held by the United States for the benefit of an individual
Indian; or
`(III) held by an individual subject to restriction by the United
States against alienation; and
`(iii) over which an Indian tribe exercises
governmental power.
`(17) Indian tribe: The term `Indian tribe' means any Indian
tribe, band, nation, or other organized group or community of
Indians that--
`(A) is recognized as eligible by the Secretary for the
special programs and services provided by the United States
to Indians because of their status as Indians; and
`(B) is recognized as possessing powers of self-government.
`(18) Key employee: The term `key employee' means any
individual employed in a gaming operation licensed pursuant to
this Act in a supervisory capacity or empowered to make any
discretionary decision with regard to the gaming operation,
including any pit boss, shift boss, credit executive, cashier
supervisor, gaming facility manager or assistant manager, or
manager or supervisor of security employees.
`(19) Management contract: The term `management contract'
means any contract or collateral agreement between an Indian
tribe and a contractor, if such contract or agreement provides
for the management of all or part of a gaming operation.
`(20) Management contractor: The term `management contractor'
means any person entering into a management contract with an
Indian tribe or an agent of the Indian tribe for the management
of a gaming operation, including any person with a financial
interest in such contract.
`(21) Material control: The term `material control' means the
exercise of authority or supervision or the power to make or
cause to be made any discretionary decision with regard to
matters which have a substantial effect on the financial or
management aspects of a gaming operation.
`(22) Net revenues: The term `net revenues' means the gross
revenues of an Indian gaming activity reduced by the sum of--
`(A) any amounts paid out or paid for as prizes; and
`(B) the total operating expenses associated with the
gaming activity, excluding management fees.
`(23) Person: The term `person' means an individual, firm,
corporation, association, partnership, trust, consortium, joint
venture, entity, or gaming operation.
`(24) Secretary: The term `Secretary' means the Secretary of
the Interior.
`SEC. 5. ESTABLISHMENT OF THE FEDERAL INDIAN GAMING REGULATORY
COMMISSION.
`(a) Establishment: There is established as an independent agency
of the United States, a Commission to be known as the Federal
Indian Gaming Regulatory Commission. Such Commission shall be an
independent establishment, as defined in section 104 of title 5,
United States Code.
`(b) Composition of the Commission:
`(1) In general: The Commission shall be composed of 3
full-time members, who shall be appointed by the President, by
and with the advice and consent of the Senate.
`(2) Citizenship of members: Each member of the Commission
shall be a citizen of the United States.
`(3) Requirements for members: No member of the Commission
may--
`(A) pursue any other business or occupation or hold any
other office;
`(B) be actively engaged in or, other than through
distribution of gaming revenues as a member of an Indian
tribe, have any direct pecuniary interest in gaming
activities;
`(C) other than through distribution of gaming revenues
as a member of an Indian tribe, have any pecuniary interest
in any business or organization that holds a gaming license
under this Act or that does business with any person or
organization licensed under this Act;
`(D) have been convicted of a felony or gaming offense; or
`(E) have any financial interest in, or management
responsibility for, any gaming-related contract or any
other contract approved pursuant to this Act.
`(4) Political affiliation:
`(A) In general: Not more than 2 members of the
Commission shall be members of the same political party. In
making appointments to the Commission, the President shall
appoint members of different political parties, to the
extent practicable.
`(B) Tribal membership: At least 2 members of the
Commission shall each be a member of a federally recognized
Indian tribe. No 2 members appointed under this
subparagraph shall be members of the same Indian tribe.
`(5) Additional requirements: The Commission shall be
composed of the most qualified individuals available, subject
to the following conditions:
`(A) Certified public accountant representation: One
member of the Commission shall be a certified public
accountant with not less than 5 years of progressively
responsible experience in accounting and auditing, and a
comprehensive knowledge of the principles and practices of
corporate finance.
`(B) Law enforcement representation: One member of the
Commission shall be selected with special reference to
training and experience in the fields of investigation or
law enforcement.
`(6) Background investigations: The Attorney General shall
conduct a background investigation concerning any individual
under consideration for appointment to the Commission, with
particular regard to the financial stability, integrity,
responsibility, and reputation for good character, honesty, and
integrity of the nominee.
`(c) Chairperson: The President shall select a Chairperson from
among the members appointed to the Commission.
`(d) Vice Chairperson: The Commission shall select, by majority
vote, one of the members of the Commission to serve as Vice
Chairperson. The Vice Chairperson shall--
`(1) serve as Chairperson of the Commission in the absence of
the Chairperson; and
`(2) exercise such other powers as may be delegated by the
Chairperson.
`(e) Terms of Office:
`(1) In general: Each member of the Commission shall hold
office for a term of 5 years.
`(2) Initial appointments: Initial appointments to the
Commission shall be made for the following terms:
`(A) The Chairperson shall be appointed for a term of 5
years.
`(B) One member shall be appointed for a term of 4 years.
`(C) One member shall be appointed for a term of 3 years.
`(3) Limitation: No member shall serve for more than 2 terms
of 5 years each.
`(f) Vacancies:
`(1) In general: Each individual appointed by the President
to serve as Chairperson and each member of the Commission
shall, unless removed for cause under paragraph (2), serve in
the capacity for which such individual is appointed until the
expiration of the term of such individual or until a successor
is duly appointed and qualified.
`(2) Removal from office: The Chairperson or any member of
the Commission may only be removed from office before the
expiration of the term of office by the President for neglect
of duty, malfeasance in office, or for other good cause shown.
`(3) Term to fill vacancies: The term of any member appointed
to fill a vacancy on the Commission shall be for the unexpired
term of the member.
`(g) Quorum: Two members of the Commission shall constitute a
quorum.
`(h) Meetings:
`(1) In general: The Commission shall meet at the call of the
Chairperson or a majority of the members of the Commission.
`(2) Majority of members determine action: A majority of the
members of the Commission shall determine any action of the
Commission.
`(i) Compensation:
`(1) Chairperson: The Chairperson shall be paid at a rate
equal to that of level IV of the Executive Schedule under
section 5316 of title 5, United States Code.
`(2) Other members: Each other member of the Commission shall
be paid at a rate equal to that of level V of the Executive
Schedule under section 5316 of title 5, United States Code.
`(3) Travel: All members of the Commission shall be
reimbursed in accordance with title 5, United States Code, for
travel, subsistence, and other necessary expenses incurred by
them in the performance of their duties.
`(j) Administrative Support Services: The Administrator of
General Services shall provide to the Commission on a reimbursable
basis such administrative support services as the Commission may
request.
`SEC. 6. POWERS OF THE CHAIRPERSON.
`(a) Chief Executive Officer: The Chairperson shall serve as the
chief executive officer of the Commission.
`(b) Administration of the Commission:
`(1) In general: Subject to subsection (c), the Chairperson--
`(A) shall employ and supervise such personnel as the
Chairperson considers necessary to carry out the functions
of the Commission, and assign work among such personnel;
`(B) shall appoint a General Counsel to the Commission
who shall be paid at the annual rate of basic pay payable
for ES-6 of the Senior Executive Service Schedule under
section 5382 of title 5, United States Code;
`(C) shall appoint and supervise other staff of the
Commission without regard to the provisions of title 5,
United States Code, governing appointments in the
competitive service;
`(D) may procure temporary and intermittent services
under section 3109(b) of title 5, United States Code, but
at rates for individuals not to exceed the daily equivalent
of the maximum annual rate of basic pay payable for ES-6 of
the Senior Executive Service Schedule;
`(E) may request the head of any Federal agency to detail
any personnel of such agency to the Commission to assist
the Commission in carrying out the duties of the Commission
under this Act, unless otherwise prohibited by law;
`(F) shall use and expend Federal funds and funds
collected pursuant to section 17; and
`(G) may contract for the services of such other
professional, technical, and operational personnel and
consultants as may be necessary to the performance of the
Commission's responsibilities under this Act.
`(2) Compensation of staff: The staff referred to in
paragraph (1)(C) shall be paid without regard to the provisions
of chapter 51 and subchapters III and VIII of chapter 53 of
title 5, United States Code, relating to classification and
General Schedule and Senior Executive Service Schedule pay
rates, except that no individual so appointed may receive pay
in excess of the annual rate of basic pay payable for ES-5 of
the Senior Executive Service Schedule under section 5382 of
title 5, United States Code.
`(c) Applicable Policies: In carrying out any of the functions
under this section, the Chairperson shall be governed by the
general policies of the Commission and by such regulatory
decisions, findings, and determinations as the Commission may by
law be authorized to make.
`SEC. 7. POWERS AND AUTHORITY OF THE COMMISSION.
`(a) General Powers:
`(1) In general: The Commission shall have the power to--
`(A) approve the annual budget of the Commission;
`(B) promulgate regulations to carry out this Act;
`(C) establish a rate of fees and assessments, as
provided in section 17;
`(D) conduct investigations, including background
investigations;
`(E) issue a temporary order closing the operation of
gaming activities;
`(F) after a hearing, make permanent a temporary order
closing the operation of gaming activities, as provided in
section 15;
`(G) grant, deny, limit, condition, restrict, revoke, or
suspend any license issued under any licensing authority
conferred upon the Commission pursuant to this Act or fine
any person licensed pursuant to this Act for violation of
any of the conditions of licensure under this Act;
`(H) inspect and examine all premises in which class II
or class III gaming is conducted on Indian lands;
`(I) demand access to and inspect, examine, photocopy,
and audit all papers, books, and records of class II and
class III gaming activities conducted on Indian lands and
any other matters necessary to carry out the duties of the
Commission under this Act;
`(J) use the United States mail in the same manner and
under the same conditions as any department or agency of
the United States;
`(K) procure supplies, services, and property by contract
in accordance with applicable Federal laws;
`(L) enter into contracts with Federal, State, tribal,
and private entities for activities necessary to the
discharge of the duties of the Commission;
`(M) serve or cause to be served process or notices of
the Commission in a manner provided for by the Commission
or in a manner provided for the service of process and
notice in civil actions in accordance with the applicable
rules of a tribal, State, or Federal court;
`(N) propound written interrogatories and appoint hearing
examiners, to whom may be delegated the power and authority
to administer oaths, issue subpoenas, propound written
interrogatories, and require testimony under oath;
`(O) conduct all administrative hearings pertaining to
civil violations of this Act (including any civil violation
of a regulation promulgated under this Act);
`(P) collect all fees and assessments authorized by this
Act and the regulations promulgated pursuant to this Act;
`(Q) assess penalties for violations of the provisions of
this Act and the regulations promulgated pursuant to this
Act;
`(R) provide training and technical assistance to Indian
tribes with respect to all aspects of the conduct and
regulation of gaming activities;
`(S) monitor and, as specifically authorized by this Act,
regulate class II and class III gaming;
`(T) approve all management-related and gaming-related
contracts; and
`(U) in addition to the authorities otherwise specified
in this Act, delegate, by published order or rule, any of
the functions of the Commission (including functions with
respect to hearing, determining, ordering, certifying,
reporting, or otherwise acting on the part of the
Commission concerning any work, business, or matter) to a
division of the Commission, an individual member of the
Commission, an administrative law judge, or an employee of
the Commission.
`(2) Statutory construction: Nothing in this section may be
construed to authorize the delegation of the function of
rulemaking, as described in subchapter II of chapter 5 of title
5, United States Code, with respect to general rules (as
distinguished from rules of particular applicability), or the
promulgation of any other rule.
`(b) Right To Review Delegated Functions:
`(1) In general: With respect to the delegation of any of the
functions of the Commission, the Commission shall retain a
discretionary right to review the action of any division of the
Commission, individual member of the Commission, administrative
law judge, or employee of the Commission, upon the initiative
of the Commission.
`(2) Vote needed for review: The vote of one member of the
Commission shall be sufficient to bring an action referred to
in paragraph (1) before the Commission for review, and the
Commission shall ratify, revise, or reject the action under
review not later than the last day of the applicable period
specified in regulations promulgated by the Commission.
`(3) Failure to conduct review: If the Commission declines to
exercise the right to such review or fails to exercise such
right within the applicable period specified in regulations
promulgated by the Commission, the action of any such division
of the Commission, individual member of the Commission,
administrative law judge, or employee, shall, for all purposes,
including any appeal or review of such action, be deemed an
action of the Commission.
`(c) Minimum Requirements: Pursuant to the procedures described
in section 9(d), after receiving recommendations from the Advisory
Committee, the Commission shall establish minimum Federal standards--
`(1) for background investigations, licensing of persons, and
licensing of gaming operations associated with the conduct or
regulation of class II and class III gaming on Indian lands by
tribal governments; and
`(2) for the operation of class II and class III gaming
activities on Indian lands, including--
`(A) surveillance and security personnel and systems
capable of monitoring all gaming activities, including the
conduct of games, cashiers' cages, change booths, count
rooms, movements of cash and chips, entrances and exits to
gaming facilities, and other critical areas of any gaming
facility;
`(B) procedures for the protection of the integrity of
the rules for the play of games and controls related to
such rules;
`(C) credit and debit collection controls;
`(D) controls over gambling devices and equipment; and
`(E) accounting and auditing.
`(d) Commission Access to Information:
`(1) In general: The Commission may secure from any
department or agency of the United States information necessary
to enable the Commission to carry out this Act. Unless
otherwise prohibited by law, upon request of the Chairperson,
the head of such department or agency shall furnish such
information to the Commission.
`(2) Information transfer: The Commission may secure from any
law enforcement or gaming regulatory agency of any State,
Indian tribe, or foreign nation information necessary to enable
the Commission to carry out this Act. Unless otherwise
prohibited by law, upon request of the Chairperson, the head of
any State or tribal law enforcement agency shall furnish such
information to the Commission.
`(3) Privileged information: Notwithstanding sections 552 and
552a of title 5, United States Code, the Commission shall
protect from disclosure information provided by Federal, State,
tribal, or international law enforcement or gaming regulatory
agencies.
`(4) Law enforcement agency: For purposes of this subsection,
the Commission shall be considered a law enforcement agency.
`(e) Investigations and Actions:
`(1) In general:
`(A) Possible violations: The Commission may, at the
discretion of the Commission, and as specifically
authorized by this Act, conduct such investigations as the
Commission considers necessary to determine whether any
person has violated, is violating, or is conspiring to
violate any provision of this Act (including any rule or
regulation promulgated under this Act). The Commission may
require or permit any person to file with the Commission a
statement in writing, under oath, or otherwise as the
Commission may determine, concerning all of the relevant
facts and circumstances regarding the matter under
investigation by the Commission pursuant to this subsection.
`(B) Administrative investigations: The Commission is
authorized, at the discretion of the Commission, and as
specifically authorized by this Act, to investigate such
facts, conditions, practices, or matters as the Commission
considers necessary or proper to aid in--
`(i) the enforcement of any provision of this Act;
`(ii) prescribing rules and regulations under this
Act; or
`(iii) securing information to serve as a basis for
recommending further legislation concerning the matters
to which this Act relates.
`(2) Administrative authorities:
`(A) In general: For the purpose of any investigation or
any other proceeding conducted under this Act, any member
of the Commission or any officer designated by the
Commission is empowered to administer oaths and
affirmations, subpoena witnesses, compel their attendance,
take evidence, and require the production of any books,
papers, correspondence, memoranda, or other records that
the Commission considers relevant or material to the
inquiry. The attendance of such witnesses and the
production of any such records may be required from any
place in the United States at any designated place of
hearing.
`(B) Requiring appearances or testimony: In case of
contumacy by, or refusal to obey any subpoena issued to,
any person, the Commission may invoke the jurisdiction of
any court of the United States within the jurisdiction of
which an investigation or proceeding is carried on, or
where such person resides or carries on business, in
requiring the attendance and testimony of witnesses and the
production of books, papers, correspondence, memoranda, and
other records.
`(C) Court orders: Any such court may issue an order
requiring such person to appear before the Commission or
member of the Commission or officer designated by the
Commission, there to produce records, if so ordered, or to
give testimony touching the matter under investigation or
in question, and any failure to obey such order of the
court may be punished by such court as a contempt of such
court.
`(3) Enforcement:
`(A) In general: If the Commission determines that any
person is engaged, has engaged, or is conspiring to engage,
in any act or practice constituting a violation of any
provision of this Act (including any rule or regulation
promulgated under this Act), the Commission may--
`(i) bring an action in the appropriate district
court of the United States or the United States
District Court for the District of Columbia to enjoin
such act or practice, and upon a proper showing, the
court shall grant, without bond, a permanent or
temporary injunction or restraining order; or
`(ii) transmit such evidence as may be available
concerning such act or practice as may constitute a
violation of any Federal criminal law to the Attorney
General, who may institute the necessary criminal
proceedings.
`(B) Statutory construction: The authority of the
Commission to conduct investigations and take actions may
not be construed to affect in any way the authority of any
other agency or department of the United States to carry
out statutory responsibilities of such agency or department.
`(4) Writs, injunctions, and orders: Upon application of the
Commission, each district court of the United States shall have
jurisdiction to issue writs of mandamus, injunctions, and
orders commanding any person to comply with the provisions of
this Act (including any rules and regulations promulgated under
this Act).
`SEC. 8. REGULATORY FRAMEWORK.
`(a) Class II Gaming: For class II gaming, Indian tribes shall
retain the right of such tribes to, in a manner that meets or
exceeds minimum Federal standards established by the Commission
pursuant to section 7(c)--
`(1) monitor and regulate such gaming; and
`(2) conduct background investigations and issue licenses to
persons who are required to obtain a license under section 10(a).
`(b) Class III Gaming Conducted Under a Tribal-State Compact: For
class III gaming conducted under the authority of a tribal-State
compact entered into pursuant to section 12, an Indian tribe or a
State, or both, as provided in a compact or by tribal ordinance or
resolution, shall, in a manner that meets or exceeds minimum
Federal standards established by the Commission pursuant to section
7(c)--
`(1) monitor and regulate gaming;
`(2) conduct background investigations and issue licenses to
persons who are required to obtain a license pursuant to
section 10(a); and
`(3) establish and regulate internal control systems.
`(c) Certain Other Compacts: For class III gaming conducted under
the authority of a compact negotiated with the Secretary pursuant
to section 12(a)(2), such compact shall provide that the Indian
tribes or other appropriate entity shall, in a manner that meets or
exceeds minimum Federal standards established by the Commission
pursuant to section 7(c)--
`(1) monitor and regulate such gaming;
`(2) conduct background investigations and issue licenses to
persons who are required to obtain a license pursuant to
section 10(a); and
`(3) establish and regulate internal control systems.
`(d) Violations of Minimum Federal Standards:
`(1) Class ii gaming: In any case in which an Indian tribe
that conducts class II gaming substantially fails to meet
minimum Federal standards for class II gaming, after providing
the Indian tribe notice and opportunity to cure violations and
to be heard, and after the exhaustion of other authorized
remedies and sanctions, the Commission shall have the authority
to conduct background investigations, issue licenses, and
establish and regulate internal control systems. Such authority
of the Commission may be exclusive until such time as the
regulatory and internal control systems of the Indian tribe
meet or exceed the minimum Federal standards concerning
regulatory, licensing, or internal control requirements
established by the Commission.
`(2) Class iii gaming: In any case in which an Indian tribe
or a State (or both) that regulates class III gaming fails to
meet or exceed minimum Federal standards for class III gaming,
after providing notice and opportunity to cure violations and
be heard, and after the exhaustion of other authorized remedies
and sanctions, the Commission shall have the authority to
conduct background investigations,
issue licenses, and establish and regulate internal control
systems. Such authority of the Commission may be exclusive until
such time as the regulatory or internal control systems of the
Indian tribe or a State, or both, meet or exceed the minimum
regulatory, licensing, or internal control requirements established
by the Commission.
`SEC. 9. ADVISORY COMMITTEE ON MINIMUM REGULATORY REQUIREMENTS AND
LICENSING STANDARDS.
`(a) Establishment: The President shall establish an advisory
committee to be known as the `Advisory Committee on Minimum
Regulatory Requirements and Licensing Standards'.
`(b) Members: The Advisory Committee shall be composed of 7
members who shall be appointed by the President, of which--
`(1) 3 members, selected from a list of recommendations
submitted to the President by the Chairperson and Vice
Chairperson of the Committee on Indian Affairs of the Senate
and the Chairperson and ranking minority member of the
Subcommittee on Native American and Insular Affairs of the
Committee on Resources of the House of Representatives, shall
be members of federally recognized Indian tribes involved in
gaming covered under this Act;
`(2) 2 members, selected from a list of recommendations
submitted to the President by the Majority Leader and the
Minority Leader of the Senate and the Speaker and the Minority
Leader of the House of Representatives, shall represent State
governments; and
`(3) 2 members shall each be an employee of the Department of
Justice.
`(c) Recommendations for Minimum Federal Standards:
`(1) In general: Not later than 180 days after the date on
which the Advisory Committee is fully constituted, the Advisory
Committee shall develop and submit to the entities referred to
in paragraph (2) recommendations for minimum Federal standards
for the conduct of background investigations and the
establishment of internal control systems and licensing
standards.
`(2) Recipients of recommendations: The Advisory Committee
shall submit the recommendations described in paragraph (1) to
the Committee on Indian Affairs of the Senate, the Subcommittee
on Native American and Insular Affairs of the Committee on
Resources of the House of Representatives, the Commission, and
to each federally recognized Indian tribe.
`(3) Factors for consideration: While the minimum standards
established pursuant to this section may be developed in light
of existing industry standards, the Advisory Committee, and
Commission in promulgating standards pursuant to subsection
(d), shall give equal weight to--
`(A) the unique nature of tribal gaming as compared to
non-Indian commercial, governmental, and charitable gaming;
`(B) the broad variations in the scope and size of tribal
gaming activity;
`(C) the inherent sovereign right of Indian tribes to
regulate their own affairs; and
`(D) the findings and purposes set forth in sections 2
and 3.
`(d) Regulations: Upon receipt of the recommendations of the
Advisory Committee, the Commission shall hold public hearings on
the recommendations. After the conclusion of the hearings, the
Commission shall promulgate regulations establishing minimum
regulatory requirements and licensing standards.
`(e) Travel: Members of the Advisory Committee appointed under
paragraphs (1) and (2) of subsection (b) shall be reimbursed for
travel and per diem in lieu of subsistence expenses during the
performance of duties of the Advisory Committee while away from
home or their regular place of business, in accordance with
subchapter I of chapter 57 of title 5, United States Code.
`(f) Termination: The Advisory Committee shall cease to exist on
the date that is 60 days after the date on which the Advisory
Committee submits the recommendations under subsection (c).
`(g) Exemption From Federal Advisory Committee Act: All
activities of the Advisory Committee shall be exempt from the
Federal Advisory Committee Act (5 U.S.C. App.).
`SEC. 10. LICENSING.
`(a) In General: A license issued under this Act shall be
required of--
`(1) gaming operations;
`(2) key employees of a gaming operation;
`(3) management- and gaming-related contractors;
`(4) any gaming service industry; and
`(5) any person who has material control, either directly or
indirectly, over a licensed gaming operation.
`(b) Certain Licenses for Management Contractors and Gaming
Operations: Notwithstanding any other provision of law relating to
licenses issued by an Indian tribe or a State (or both) pursuant to
this Act, the Commission may require licenses of--
`(1) management contractors; and
`(2) gaming operations.
`(c) Statement of Compliance:
`(1) In general: The Commission may issue a statement of
compliance to an applicant for any license or for qualification
status under this Act at any time that the Commission is
satisfied that one or more eligibility criteria for the license
have been satisfied by an applicant.
`(2) Contents of statement: A statement issued under
subparagraph (A) shall specify the eligibility criterion
satisfied, the date of such satisfaction, and a reservation by
the Commission permitting the Commission to revoke the
statement of compliance at any time on the basis of a change of
circumstances affecting such compliance.
`(d) Gaming Operation License:
`(1) In general: No gaming operation shall operate unless all
required licenses and approvals for the gaming operation have
been obtained in accordance with this Act.
`(2) Written agreements:
`(A) Filing: Prior to the operation of any gaming
facility or activity, each management contract for the
gaming operation shall be in writing and filed with the
Commission pursuant to section 13.
`(B) Express approval required: No such agreement shall
be effective unless the Commission expressly approves the
agreement.
`(C) Requirement of additional provisions: The Commission
may require that an agreement referred to in subparagraph
(A) includes any provisions that are reasonably necessary
to meet the requirements of this Act.
`(D) Ineligibility or exemption: Any applicant who does
not have the ability to exercise any significant control
over a licensed gaming operation may be determined by the
Commission to be ineligible to hold a license or may exempt
such applicant from being required to hold a license.
`(e) Denial of License: The Commission, in the exercise of the
specific licensure power conferred upon the Commission by this Act,
shall deny a license to any applicant who is disqualified on the
basis of a failure to meet any of the minimum Federal standards
promulgated by the Commission pursuant to section 7(c).
`(f) Application for License:
`(1) In general: Upon the filing of the materials specified
in paragraph (2), the Commission shall conduct an investigation
into the qualifications of an applicant. The Commission may
conduct a nonpublic hearing on such investigation concerning
the qualifications of the applicant in accordance with
regulations promulgated by the Commission.
`(2) Filing of materials: The Commission shall carry out
paragraph (1) upon the filing of--
`(A) an application for a license that the Commission is
specifically authorized to issue pursuant to this Act; and
`(B) such supplemental information as the Commission may
require.
`(3) Timing of final action: After an application is
submitted to the Commission, the Commission shall take final
action not later than 90 days after--
`(A) completing all hearings and investigations
concerning the application; and
`(B) receiving all information required to be submitted
to the Commission.
`(4) Deadline for hearings and investigations: Not later than
90 days after receiving the information described in paragraph
(3)(B), the Commission shall complete the hearings and
investigations described in paragraph (3)(A).
`(5) Action by commission: Following the completion of an
investigation and hearing, the Commission shall either deny or
grant a license to an applicant.
`(6) Denials:
`(A) In general: The Commission may deny any application
pursuant to this Act.
`(B) Order of denial: If the Commission denies an
application submitted under this section, the Commission
shall prepare an order denying such application. In
addition, if an applicant requests a statement of the
reasons for the denial, the Commission shall prepare such
statement and provide the statement to the applicant. The
statement shall include specific findings of fact.
`(7) Issuance of licenses: If the Commission is satisfied
that an applicant is qualified to receive a license, the
Commission shall issue a license to the applicant upon tender
of--
`(A) all license fees and assessments as required by this
Act (including regulations promulgated by the Commission
under this Act); and
`(B) such bonds as the Commission may require for the
faithful performance of all requirements imposed by this
Act (including regulations promulgated under this Act).
`(8) Bonds:
`(A) Amounts: The Commission shall, by rules of uniform
application, fix the amount of each bond that the
Commission requires under this section in such amount as
the Commission considers appropriate.
`(B) Use of bonds: The bonds furnished to the Commission
under this paragraph may be applied by the Commission to
the payment of any unpaid liability of the licensee under
this Act.
`(C) Terms: Each bond required in accordance with this
section shall be furnished--
`(i) in cash or negotiable securities;
`(ii) by a surety bond guaranteed by a satisfactory
guarantor; or
`(iii) by an irrevocable letter of credit issued by a
banking institution acceptable to the Commission.
`(D) Treatment of principal and income: If a bond is
furnished in cash or negotiable securities, the principal
shall be placed without restriction at the disposal of the
Commission, but any income shall inure to the benefit of
the licensee.
`(g) Renewal of License:
`(1) In general:
`(A) Renewals: Subject to the power of the Commission to
deny, revoke, or suspend licenses, any license issued under
this section and in force shall be renewed by the
Commission for the next succeeding license period upon
proper application for renewal and payment of license fees
and assessments, as required by applicable law (including
regulations of the Commission).
`(B) Renewal term: Subject to subparagraph (C), the term
of a renewal period for a license issued under this section
shall be for a period of not more than--
`(i) 2 years, for each of the first 2 renewal periods
succeeding the initial issuance of a license pursuant
to subsection (f); and
`(ii) 3 years, for each succeeding renewal period.
`(C) Reopening hearings: The Commission may reopen
licensing hearings at any time after the Commission has
issued or renewed a license.
`(2) Transition:
`(A) In general: Notwithstanding any other provision of
this subsection, the Commission shall, for the purpose of
facilitating the administration of this Act, renew a
license for an activity covered under subsection (a) that
is held by a person on the date of enactment of the Indian
Gaming Regulatory Act Amendments Act of 1995 for a renewal
period of 18 months.
`(B) Action before expiration: The Commission shall act
upon any license renewal application that is filed in a
timely manner prior to the date of expiration of the then
current license.
`(3) Filing requirement: Each application for renewal shall
be filed with the Commission not later than 90 days prior to
the expiration of the then current license. All license fees
and assessments that are required by law shall be paid to the
Commission on or before the date of expiration of the then
current license.
`(4) Renewal certificate: Upon renewal of a license, the
Commission shall issue an appropriate renewal certificate,
validating device, or sticker, which shall be attached to the
license.
`(h) Hearings:
`(1) In general: The Commission shall establish procedures
for the conduct of hearings associated with licensing,
including procedures for denying, limiting, conditioning,
restricting, revoking, or suspending any such license.
`(2) Action by commission: Following a hearing conducted for
any of the purposes authorized in this section, the Commission
shall--
`(A) render a decision of the Commission;
`(B) issue an order; and
`(C) serve such decision and order upon the affected
parties.
`(3) Rehearing:
`(A) In general: The Commission may, upon a motion made
not later than 10 days after the service of a decision and
order, order a rehearing before the Commission on such
terms and conditions as the Commission considers just and
proper if the Commission finds cause to believe that the
decision and order should be reconsidered in view of the
legal, policy, or factual matters that are--
`(i) advanced by the party that makes the motion; or
`(ii) raised by the Commission on a motion made by
the Commission.
`(B) Action after rehearing: Following a rehearing
conducted by the Commission, the Commission shall--
`(i) render a decision of the Commission;
`(ii) issue an order; and
`(iii) serve such decision and order upon the
affected parties.
`(C) Final agency action: A decision and order made by
the Commission under paragraph (2) (if no motion for a
rehearing is made), or a decision and order made by the
Commission upon rehearing shall constitute final agency
action for purposes of judicial review.
`(4) Jurisdiction: The United States Court of Appeals for the
District of Columbia Circuit shall have jurisdiction to review
the licensing decisions and orders of the Commission.
`(i) License Registry: The Commission shall--
`(1) maintain a registry of all licenses that are granted or
denied pursuant to this Act; and
`(2) make the information contained in the registry available
to Indian tribes to assist the licensure and regulatory
activities of Indian tribes.
`SEC. 11. REQUIREMENTS FOR THE CONDUCT OF CLASS I AND CLASS II
GAMING ON INDIAN LANDS.
`(a) Class I Gaming: Class I gaming on Indian lands shall be
within the exclusive jurisdiction of the Indian tribes and shall
not be subject to the provisions of this Act.
`(b) Class II Gaming:
`(1) In general: Any class II gaming on Indian lands shall be
within the jurisdiction of the Indian tribes, but shall be
subject to the provisions of this Act.
`(2) Legal activities: An Indian tribe may engage in, and
license and regulate, class II gaming on Indian lands within
the jurisdiction of such tribe, if--
`(A) such Indian gaming is located within a State that
permits such gaming for any purpose by any person; and
`(B) the class II gaming operation meets or exceeds the
requirements of sections 7(c) and 10.
`(3) Requirements for class ii gaming operations:
`(A) In general: The Commission shall ensure that with
regard to any class II gaming operation on Indian lands--
`(i) a separate license is issued by the Indian tribe
for each place, facility, or location on Indian lands
at which class II gaming is conducted;
`(ii) the Indian tribe has or will have the sole
proprietary interest and responsibility for the conduct
of any class II gaming activity, unless the conditions
of clause (ix) apply;
`(iii) the net revenues from any class II gaming
activity may only be used--
`(I) to fund tribal government operations or programs;
`(II) to provide for the general welfare of the Indian tribe and
the members of the Indian tribe;
`(III) to promote tribal economic development;
`(IV) to donate to charitable organizations;
`(V) to help fund operations of local government agencies; or
`(VI) to comply with the provisions of section 17;
`(iv) the Indian tribe shall provide to the
Commission annual outside audits of the class II gaming
operation of the Indian tribe, which may be encompassed
within existing independent tribal audit systems;
`(v) all contracts for supplies, services, or
concessions for a contract amount equal to more than
$50,000 per year, other than contracts for professional
legal or accounting services, relating to such gaming
shall be subject to such independent audits and any
audit conducted by the Commission;
`(vi) the construction and maintenance of a class II
gaming facility and the operation of class II gaming
shall be conducted in a manner that adequately protects
the environment and public health and safety;
`(vii) there shall be instituted an adequate system
that--
`(I) ensures that--
`(aa) background investigations are conducted on primary
management officials, key employees, and persons having material
control, either directly or indirectly, in a licensed class II
gaming operation, and gaming-related contractors associated with a
licensed class II gaming operation; and
`(bb) oversight of such officials and the management by such
officials is conducted on an ongoing basis; and
`(II) includes--
`(aa) tribal licenses for persons involved in class II gaming
operations, issued in accordance with sections 7(c) and 10;
`(bb) a standard whereby any person whose prior activities,
criminal record, if any, or reputation, habits, and associations
pose a threat to the public interest or to the effective regulation
of gaming, or create or enhance the dangers of unsuitable, unfair,
or illegal practices and methods and activities in the conduct of
gaming shall not be eligible for employment or licensure; and
`(cc) notification by the Indian tribe to the Commission of the
results of such background investigation before the issuance of any
such license;
`(viii) net revenues from any class II gaming
activities conducted or licensed by any Indian tribal
government may be used to make per capita payments to
members of the Indian tribe only if--
`(I) the Indian tribe has prepared a plan to allocate revenues to
uses authorized by clause (iii);
`(II) the Secretary determines that the plan is adequate,
particularly with respect to uses described in subclause (I) or
(III) of clause (iii);
`(III) the interests of minors and other legally incompetent
persons who are entitled to receive any of the per capita payments
are protected and preserved;
`(IV) the per capita payments to minors and other legally
incompetent persons are disbursed to the parents or legal guardians
of such minors or legally incompetent persons in such amounts as
may be necessary for the health, education, or welfare of each such
minor or legally incompetent person under a plan approved by the
Secretary and the governing body of the Indian tribe; and
`(V) the per capita payments are subject to Federal income
taxation and Indian tribes withhold such taxes when such payments
are made;
`(ix) a separate license shall be issued by the
Indian tribe for any class II gaming operation owned by
any person or entity other than the Indian tribe and
conducted on Indian lands, that includes--
`(I) requirements set forth in subparagraph (C); and
`(II) requirements that are at least as restrictive as those
established by State law governing similar gaming within the
jurisdiction of the State within which such Indian lands are
located; and
`(x) no person or entity, other than the Indian
tribe, shall be eligible to receive a tribal license to
own a class II gaming operation conducted on Indian
lands within the jurisdiction of the Indian tribe if
such person or entity would not be eligible to receive
a State license to conduct the same activity within the
jurisdiction of the State.
`(B) Transition:
`(i) In general: Clauses (ii), (iii), and (ix) shall
not bar the continued operation of an individually
owned class II gaming operation that was operating on
September 1, 1986, if--
`(I) such gaming operation is licensed and regulated by an Indian
tribe;
`(II) income to the Indian tribe from such gaming is used only
for the purposes described in subparagraph (A)(iii);
`(III) not less than 60 percent of the net revenues from such
gaming operation is income to the licensing Indian tribe; and
`(IV) the owner of such gaming operation pays an appropriate
assessment to the Commission pursuant to
section 17 for the regulation of such gaming.
`(ii) Limitations on exemption: The exemption from
application provided under clause (i) may not be
transferred to any person or entity and shall remain in
effect only during such period as the gaming operation
remains within the same nature and scope as such gaming
operation was actually operated on October 17, 1988.
`(C) List: The Commission shall--
`(i) maintain a list of each individually owned
gaming operation that is subject to subparagraph
(A)(x); and
`(ii) publish such list in the Federal Register.
`(c) Petition for Certificate of Self-Regulation:
`(1) In general: Any Indian tribe that operates, directly or
with a management contract, a class II gaming activity may
petition the Commission for a certificate of self-regulation if
that Indian tribe--
`(A) has continuously conducted such activity for a
period of not less than 3 years, including a period of at
least 1 year after the date of the enactment of the Indian
Gaming Regulatory Act Amendments Act of 1995; and
`(B) has otherwise complied with the provisions of this
Act.
`(2) Issuance of certificate of self-regulation: The
Commission shall issue a certificate of self-regulation if the
Commission determines on the basis of available information,
and after a hearing if requested by the tribe, that the Indian
tribe has--
`(A) conducted its gaming activity in a manner which has--
`(i) resulted in an effective and honest accounting
of all revenues;
`(ii) resulted in a reputation for safe, fair, and
honest operation of the activity; and
`(iii) been generally free of evidence of criminal or
dishonest activity;
`(B) adopted and implemented adequate systems for--
`(i) accounting for all revenues from the activity;
`(ii) investigation, licensing, and monitoring of all
employees of the gaming activity; and
`(iii) investigation, enforcement, and prosecution of
violations of its gaming ordinance and regulations;
`(C) conducted the operation on a fiscally and
economically sound basis; and
`(D) paid all fees and assessments that the tribe is
required to pay to the Commission under this Act.
`(3) Effect of certificate of self-regulation: During the
period in which a certificate of self-regulation issued under
this paragraph is in effect with respect to a gaming activity
conducted by an Indian tribe--
`(A) the tribe shall--
`(i) continue to submit an annual independent audit
as required by subsection (b)(3)(A)(iv); and
`(ii) submit to the Commission a complete resume of
each employee hired and licensed by the tribe
subsequent to the issuance of a certificate of
self-regulation; and
`(B) the Commission may not assess a fee on such activity
pursuant to section 17 in excess of 1/4 of 1 percent of
the gross revenue from such activity.
`(4) Rescission: The Commission may, for just cause and after
an opportunity for a hearing, rescind a certificate of
self-regulation by majority vote of the members of the
Commission.
`(d) License Revocation: If, after the issuance of any license by
an Indian tribe under this section, the Indian tribe receives
reliable information from the Commission indicating that a licensee
does not meet any standard established under section 7(c) or 10, or
any other applicable regulation promulgated by the Commission, the
Indian tribe--
`(1) shall suspend such license; and
`(2) after notice and hearing under procedures established
pursuant to applicable tribal law, may revoke such license.
`SEC. 12. CLASS III GAMING ON INDIAN LANDS.
`(a) Requirements for the Conduct of Class III Gaming on Indian
Lands:
`(1) In general: Class III gaming activities shall be lawful
on Indian lands only if such activities are--
`(A) authorized by a compact that--
`(i) is approved pursuant to tribal law by the
governing body of the Indian tribe having jurisdiction
over such lands;
`(ii) meets the requirements of section 11(b)(3) for
the conduct of class II gaming; and
`(iii) is approved by the Secretary;
`(B) located in a State that permits such gaming for any
purpose by any person; and
`(C) conducted in conformance with a tribal-State compact
that--
`(i) is in effect; and
`(ii) is--
`(I) entered into by an Indian tribe and a State and approved by
the Secretary under paragraph (2); or
`(II) issued by the Secretary under paragraph (2).
`(2) Compact negotiations:
`(A) In general:
`(i) Compact negotiations: Any Indian tribe having
jurisdiction over the lands upon which a class III
gaming activity is to be conducted may request the
State in which such lands are located to enter into
negotiations for the purpose of entering into a
tribal-State compact governing the conduct of class III
gaming activities.
`(ii) Requirements for request for negotiations: A
request for negotiations under clause (i) shall be in
writing and shall specify each gaming activity that the
Indian tribe proposes for inclusion in the compact. Not
later than 30 days after receipt of such written
request, the State shall respond to the Indian tribe.
`(iii) Commencement of compact negotiations: Compact
negotiations conducted under this paragraph shall
commence not later than 30 days after the date on which
a response by a State is due to the Indian tribe, and
shall be completed not later than 120 days after the
initiation of compact negotiations, unless the State
and the Indian tribe agree to a different period of
time for the completion of compact negotiations.
`(iv) Inability to meet deadlines for negotiations:
`(I) Notification: If the State and the Indian tribe find that
the State and Indian tribe are unable to commence or complete
compact negotiations within the applicable time periods provided in
this subsection, the Indian tribe shall notify the Secretary.
`(II) Presentation of positions: Upon receipt of a notice under
subclause (I), the Secretary shall request that the tribe and the
State present their respective positions, not later than 60 days
after such request, regarding--
`(aa) the gaming activities that the tribe seeks to conduct that
are permissible under this Act;
`(bb) the framework for regulation of tribal gaming; and
`(cc) such other matters as the Secretary may consider appropriate.
`(B) Approval of compact: Not later than 90 days after
the date of expiration of the 60-day period specified in
subparagraph (A), the Secretary shall approve a compact
that meets the requirements of this section, and shall
publish the compact in the Federal Register. The compact
shall--
`(i) include provisions--
`(I) that best meet the objectives of this Act; and
`(II) for background investigations, internal controls, and
licensing that are consistent with this Act (including regulations
promulgated by the Commission pursuant to section 7(c)); and
`(ii) not violate--
`(I) any provision of this Act (including regulations promulgated
by the Commission pursuant to this Act);
`(II) any other provision of Federal law; or
`(III) the trust obligation of the United States to Indians.
`(C) Mandatory disapproval: Notwithstanding any other
provision of this Act, the Secretary shall not have the
authority to approve a compact if the compact requires
State regulation of Indian gaming absent the consent of the
State or the Indian tribe.
`(D) Effect of publication of compact: Except for an
appeal conducted under subchapter II of chapter 5 of title
5, United States Code, by an Indian tribe or a State
associated with the publication of the compact, the
publication of a compact pursuant to subparagraph (B) that
permits a form of class III gaming shall, for the purposes
of this Act, be conclusive evidence that such class III
gaming is an activity subject to negotiations under the
laws of the State where the gaming is to be conducted, in
any matter under consideration by the Commission or a
Federal court.
`(E) Effective date of compact: Any compact negotiated
under this subsection shall become effective upon the
publication of the compact in the Federal Register by the
Secretary.
`(F) Duties of commission: Consistent with the provisions
of sections 7(c), 8, and 10, the Commission shall monitor
and, if specifically authorized, regulate and license class
III gaming with respect to any compact that is approved by
the Secretary under this subsection and published in the
Federal Register.
`(3) Provisions of compacts:
`(A) In general: A compact negotiated under this
subsection may include provisions relating to--
`(i) the application of the criminal and civil laws
(including regulations) of the Indian tribe or the
State that are directly related to, and necessary for,
the licensing and regulation of such activity in a
manner consistent with sections 7(c), 8, and 10;
`(ii) the allocation of criminal and civil
jurisdiction between the State and the Indian tribe
necessary for the enforcement of such laws (including
regulations);
`(iii) the assessment by the State of the costs
associated with such activities in such amounts as are
necessary to defray the costs of regulating such
activity;
`(iv) taxation by the Indian tribe of such activity
in amounts comparable to amounts assessed by the State
for comparable activities;
`(v) remedies for breach of compact provisions;
`(vi) standards for the operation of such activity
and maintenance of the gaming facility, including
licensing, in a manner consistent with sections 7(c),
8, and 10; and
`(vii) any other subject that is directly related to
the operation of gaming activities and the impact of
gaming on tribal, State, and local governments.
`(B) Statutory construction with respect to assessments:
Except for any assessments for services agreed to by an
Indian tribe in compact negotiations, nothing in this
section may be construed as conferring upon a State or any
political subdivision thereof the authority to impose any
tax, fee, charge, or other assessment upon an Indian tribe,
an Indian gaming operation or the value generated by the
gaming operation, or any person or entity authorized by an
Indian tribe to engage in a class III gaming activity in
conformance with this Act.
`(4) Statutory construction with respect to certain rights of
indian tribes: Nothing in this subsection impairs the right of
an Indian tribe to regulate class III gaming on the Indian
lands of the Indian tribe concurrently with a State and the
Commission, except to the extent that such regulation is
inconsistent with, or less stringent than, this Act or any laws
(including regulations) made applicable by any compact entered
into by the Indian tribe under this subsection that is in effect.
`(5) Exemption: The provisions of section 2 of the Act of
January 2, 1951 (commonly referred to as the `Gambling Devices
Transportation Act') (64 Stat. 1134, chapter 1194, 15 U.S.C.
1175) shall not apply to any class II gaming activity or any
gaming activity conducted pursuant to a compact entered into
after the date of enactment of this Act, but in no event shall
this paragraph be construed as invalidating any exemption from
the provisions of such section 2 for any compact entered into
prior to the date of enactment of this Act.
`(b) Jurisdiction of United States District Court for the
District of Columbia: The United States District Court for the
District of Columbia shall have jurisdiction over any action
initiated by the Secretary, the Commission, a State, or an Indian
tribe to enforce any provision of a compact entered into under
subsection (a) or to enjoin a class III gaming activity located on
Indian lands and conducted in violation of any compact that is in
effect and that was entered into under subsection (a).
`(c) Approval of Compacts:
`(1) In general: The Secretary is authorized to approve any
compact between an Indian tribe and a State governing the
conduct of class III gaming on Indian lands of such Indian
tribe entered into under subsection (a).
`(2) Reasons for disapproval by secretary: The Secretary may
disapprove a compact entered into under subsection (a) only if
such compact violates any--
`(A) provision of this Act or any regulation promulgated
by the Commission pursuant to this Act;
`(B) other provision of Federal law; or
`(C) trust obligation of the United States to Indians.
`(3) Effect of failure to act on compact: If the Secretary
fails to approve or disapprove a compact entered into under
subsection (a) before the date that is 45 days after the date
on which the compact is submitted to the Secretary for
approval, the compact shall be considered to have been approved
by the Secretary, but only to the extent the compact is
consistent with the provisions of this Act and the regulations
promulgated by the Commission pursuant to this Act.
`(4) Notification: The Secretary shall publish in the Federal
Register notice of any compact that is approved, or considered
to have been approved, under this subsection.
`(d) Revocation of Ordinance:
`(1) In general: The governing body of an Indian tribe, in
its sole discretion, may adopt an ordinance or resolution
revoking any prior ordinance or resolution that authorized
class III gaming on the Indian lands of the Indian tribe. Such
revocation shall render class III gaming illegal on the Indian
lands of such Indian tribe.
`(2) Publication of revocation: An Indian tribe shall submit
any revocation ordinance or resolution described in paragraph
(1) to the Commission. The Commission shall publish such
ordinance or resolution in the Federal Register. The revocation
provided by such ordinance or resolution shall take effect on
the date of such publication.
`(3) Conditional operation: Notwithstanding any other
provision of this subsection--
`(A) any person or entity operating a class III gaming
activity pursuant to this paragraph on the date on which an
ordinance or resolution described in paragraph (1) that
revokes authorization for such class III gaming activity is
published in the Federal Register may, during the 1-year
period beginning on the date on which such revocation,
ordinance, or resolution is published under paragraph (2),
continue to operate such activity in conformance with an
applicable compact entered into under subsection (a) that
is in effect; and
`(B) any civil action that arises before, and any crime
that is committed before, the termination of such 1-year
period shall not be affected by such revocation ordinance,
or resolution.
`(e) Certain Class III Gaming Activities:
`(1) Compacts entered into before the date of enactment of
the indian gaming regulatory act amendments act of 1995: Class
III gaming activities that are authorized under a compact
approved or issued by the Secretary under the authority of this
Act prior to the date of enactment of the Indian Gaming
Regulatory Act Amendments Act of 1995 shall, during such period
as the compact is in effect, remain lawful for the purposes of
this Act, notwithstanding the Indian Gaming Regulatory Act
Amendments Act of 1995 and the amendments made by such Act or
any change in State law enacted after the approval or issuance
of the compact.
`(2) Compact entered into after the date of enactment of the
indian gaming regulatory act amendments act of 1995: Any
compact entered into under subsection (a) after the date
specified in paragraph (1) shall remain lawful for the purposes
of this Act, notwithstanding any change in State law enacted
after the approval or issuance of the compact.
`SEC. 13. REVIEW OF CONTRACTS.
`(a) Contracts Included: The Commission shall review and approve
or disapprove--
`(1) any management contract for the operation and management
of any gaming activity that an Indian tribe may engage in under
this Act; and
`(2) unless licensed by an Indian tribe consistent with the
minimum Federal standards adopted pursuant to section 7(c), any
gaming-related contract.
`(b) Management Contract Requirements: The Commission shall
approve any management contract between an Indian tribe and a
person licensed by an Indian tribe or the Commission that is
entered into pursuant to this Act only if the Commission determines
that the contract provides for--
`(1) adequate accounting procedures that are maintained, and
verifiable financial reports that are prepared by or for, the
governing body of the Indian tribe on a monthly basis;
`(2) access to the daily gaming operations by appropriate
officials of the Indian tribe who shall have the right to
verify the daily gross revenues and income derived from any
gaming activity;
`(3) a minimum guaranteed payment to the Indian tribe that
has preference over the retirement of any development and
construction costs;
`(4) an agreed upon ceiling for the repayment of any
development and construction costs;
`(5) a contract term of not to exceed 5 years, except that,
upon the request of an Indian tribe, the Commission may
authorize a contract term that exceeds 5 years but does not
exceed 7 years, if the Commission is satisfied that the capital
investment required, and the income projections for the
particular gaming activity, require the additional time; and
`(6) grounds and mechanisms for the termination of the
contract, but any such termination shall not require the
approval of the Commission.
`(c) Management Fee Based on Percentage of Net Revenues:
`(1) Percentage fee: The Commission may approve a management
contract that provides for a fee that is based on a percentage
of the net revenues of a tribal gaming activity if the
Commission determines that such percentage fee is reasonable,
taking into consideration surrounding circumstances.
`(2) Fee amount: Except as provided in paragraph (3), a fee
described in paragraph (1) shall not exceed an amount equal to
30 percent of the net revenues described in such paragraph.
`(3) Exception: Upon the request of an Indian tribe, if the
Commission is satisfied that the capital investment required,
and income projections for, a tribal gaming activity,
necessitate a fee in excess of the amount specified in
paragraph (2), the Commission may approve a management contract
that provides for a fee described in paragraph (1) in an amount
in excess of the amount specified in paragraph (2), but not to
exceed 40 percent of the net revenues described in paragraph (1).
`(d) Gaming-Related Contract Requirements: The Commission shall
approve a gaming-related contract covered under subsection (a)(2)
that is entered into pursuant to this Act only if the Commission
determines that the contract provides for--
`(1) grounds and mechanisms for termination of the contract,
but such termination shall not require the approval of the
Commission; and
`(2) such other provisions as the Commission may be empowered
to impose by this Act.
`(e) Time Period for Review:
`(1) In general: Except as provided in paragraph (2), not
later than 90 days after the date on which a management
contract or other gaming-related contract is submitted to the
Commission for approval, the Commission shall approve or
disapprove such contract on the merits of the contract. The
Commission may extend the 90-day period for an additional
period of not more than 45 days if the Commission notifies the
Indian tribe in writing of the reason for the extension of the
period. The Indian tribe may bring an action in the United
States District Court for the District of Columbia to compel
action by the Commission if a contract has not been approved or
disapproved by the termination date of an applicable period
under this subsection.
`(2) Effect of failure of commission to act on certain
gaming-related contract: Any gaming-related contract for an
amount less than or equal to $100,000 that is submitted to the
Commission pursuant to paragraph (1) by a person who holds a
valid license that is in effect under this Act shall be deemed
to be approved, if by the date that is 90 days after the
contract is submitted to the Commission, the Commission fails
to approve or disapprove the contract.
`(f) Contract Modifications and Void Contracts: The Commission,
after providing notice and hearing--
`(1) shall have the authority to require appropriate contract
modifications to ensure compliance with the provisions of this
Act; or
`(2) may void any contract regulated by the Commission under
this Act if the Commission determines that any of the
provisions of this Act have been violated by the terms of the
contract.
`(g) Interests in Real Property: No contract regulated by this
Act may transfer or, in any other manner, convey any interest in
land or other real property, unless specific statutory authority
exists, all necessary approvals for such transfer or conveyance
have been obtained, and such transfer or conveyance is clearly
specified in the contract.
`(h) Authority of the Secretary: The authority of the Secretary
under section 2103 of the Revised Statutes (25 U.S.C. 81) shall not
extend to any contract or agreement that is regulated pursuant to
this Act.
`(i) Disapproval of Contracts: The Commission may not approve a
contract if the Commission determines that--
`(1) any person having a direct financial interest in, or
management responsibility for, such contract, and, in the case
of a corporation, any individual who serves on the board of
directors of such corporation, and any of the stockholders who
hold (directly or indirectly) 10 percent or more of its issued
and outstanding stock--
`(A) is an elected member of the governing body of the
Indian tribe which is a party to the contract;
`(B) has been convicted of any felony or gaming offense;
`(C) has knowingly and willfully provided materially
important false statements or information to the Commission
or the Indian tribe pursuant to this Act or has refused to
respond to questions propounded by the Commission; or
`(D) has been determined to be a person whose prior
activities, criminal record, if any, or reputation, habits,
and associations pose a threat to the public interest or to
the effective regulation and control of gaming, or create
or enhance the dangers of unsuitable, unfair, or illegal
practices, methods, and activities in the conduct of gaming
or the carrying on of the business and financial
arrangements incidental thereto;
`(2) the contractor--
`(A) has unduly interfered or influenced for its gain or
advantage any decision or process of tribal government
relating to the gaming activity; or
`(B) has attempted to interfere or influence a decision
pursuant to subparagraph (A);
`(3) the contractor has deliberately or substantially failed
to comply with the terms of the contract; or
`(4) a trustee, exercising the skill and diligence that a
trustee is commonly held to, would not approve the contract.
`SEC. 14. REVIEW OF EXISTING CONTRACTS; INTERIM AUTHORITY.
`(a) Review of Existing Contracts:
`(1) In general: At any time after the Commission is sworn in
and has promulgated regulations for the implementation of this
Act, the Commission shall notify each Indian tribe and
management contractor who, prior to the enactment of the Indian
Gaming Regulatory Act Amendments Act of 1995, entered into a
management contract that was approved by the Secretary, that
the Indian tribe is required to submit to the Commission such
contract, including all collateral agreements relating to the
gaming activity, for review by the Commission not later than 60
days after such notification. Any such contract shall be valid
under this Act, unless the contract is disapproved by the
Commission under this section.
`(2) Review:
`(A) In general: Not later than 180 days after the
submission of a management contract, including all
collateral agreements, to the Commission pursuant to this
section, the Commission shall review the contract to
determine whether the contract meets the requirements of
section 13 and was entered into in accordance with the
procedures under such section.
`(B) Approval of contract: The Commission shall approve a
management contract submitted for review under subsection
(a) if the Commission determines that--
`(i) the management contract meets the requirements
of section 13; and
`(ii) the management contractor has obtained all of
the licenses that the contractor is required to obtain
under this Act.
`(C) Notification of necessary modifications: If the
Commission determines that a contract submitted under this
section does not meet the requirements of section 13, the
Commission shall provide written notification to the
parties to such contract of the necessary modifications and
the parties shall have 180 days to make the modifications.
`(b) Interim Authority of the National Indian Gaming Commission:
`(1) In general: Notwithstanding any other provision of this
Act, the Chairperson and the associate members of the National
Indian Gaming Commission who are holding office on the date of
enactment of this Act shall exercise those authorities vested
in the Federal Indian Gaming Regulatory Commission by this Act
until such time as the members of the Federal Indian Gaming
Regulatory Commission are sworn into office.
`(2) Transition: Notwithstanding any other provision of law,
the Commission shall exercise the authority conferred on the
Commission by this Act, and until such time as the Commission
promulgates revised regulations after the date of enactment of
the Indian Gaming Regulatory Act Amendments Act of 1995, the
regulations issued under this Act, as in effect on the day
before such date of enactment, shall apply.
`SEC. 15. CIVIL PENALTIES.
`(a) Amount: Any person who commits any act or causes to be done
any act that violates any provision of this Act or the rules or
regulations promulgated under this Act, or who fails to carry out
any act or causes the failure to carry out any act that is required
by any such provision of law shall be subject to a civil penalty in
an amount equal to not more than $50,000 per day for each such
violation.
`(b) Assessment and Collection:
`(1) In general: Each civil penalty assessed under this
section shall be assessed by the Commission and collected in a
civil action brought by the Attorney General on behalf of the
United States. Before the Commission refers civil penalty
claims to the Attorney General, the Commission may compromise
the civil penalty after affording the person charged with a
violation referred to in subsection (a), an opportunity to
present views and evidence in support of such action by the
Commission to establish that the alleged violation did not occur.
`(2) Penalty amount: In determining the amount of a civil
penalty assessed under this section, the Commission shall take
into account--
`(A) the nature, circumstances, extent, and gravity of
the violation committed;
`(B) with respect to the person found to have committed
such violation, the degree of culpability, any history of
prior violations, ability to pay, the effect on ability to
continue to do business; and
`(C) such other matters as justice may require.
`(c) Temporary Closures:
`(1) In general: The Commission may order the temporary
closure of all or part of an Indian gaming operation for a
substantial violation of any provision of law referred to in
subsection (a).
`(2) Hearing on order of temporary closure:
`(A) In general: Not later than 30 days after the
issuance of an order of temporary closure, the Indian tribe
or the individual owner of a gaming operation shall have
the right to request a hearing before the Commission to
determine whether such order should be made permanent or
dissolved.
`(B) Deadlines relating to hearing: Not later than 30
days after a request for a hearing is made, the Commission
shall conduct such hearing. Not later than 30 days after
the termination of the hearing, the Commission shall render
a final decision on the closure.
`SEC. 16. JUDICIAL REVIEW.
`A decision made by the Commission pursuant to sections 7, 8, 10,
13, 14, and 15 shall constitute final agency decisions for purposes
of appeal to the United States District Court for the District of
Columbia pursuant to chapter 7 of title 5, United States Code.
`SEC. 17. COMMISSION FUNDING.
`(a) Annual Fees:
`(1) In general: The Commission shall establish a schedule of
fees to be paid to the Commission annually by gaming operations
for each class II and class III gaming activity that is
regulated by this Act.
`(2) Limitation on fee rates:
`(A) In general: For each gaming operation regulated
under this Act, the rate of the fees imposed under the
schedule established under paragraph (1) shall not exceed 2
percent of the net revenues of such gaming operation.
`(B) Total amount of fees: The total amount of all fees
imposed during any fiscal year under the schedule
established under paragraph (1) shall equal not more than
$25,000,000.
`(3) Annual fee rate: The Commission, by a vote of a majority
of the members of the Commission, shall annually adopt the rate
of the fees authorized by this section. Such fees shall be
payable to the Commission on a monthly basis.
`(4) Adjustment of fees: The fees paid by a gaming operation
may be adjusted by the Commission to reduce the amount of the
fees by an amount that takes into account that regulatory
functions are performed by an Indian tribe, or the Indian tribe
and a State, pursuant to regulations promulgated by the
Commission.
`(5) Consequences of failure to pay fees: Failure to pay the
fees imposed under the schedule established under paragraph (1)
shall, subject to regulations promulgated by the Commission, be
grounds for revocation of the approval of the Commission of any
license required under this Act for the operation of gaming
activities.
`(6) Surplus funds: To the extent that revenue derived from
fees imposed under the schedule established under paragraph (1)
exceed the limitation in paragraph (2)(B) or are not expended
or committed at the close of any fiscal year, such surplus
funds shall be credited to each gaming activity that is the
subject of the fees on a pro rata basis against such fees
imposed for the succeeding year.
`(b) Reimbursement of Costs: The Commission is authorized to
assess any applicant, except the governing body of an Indian tribe,
for any license required pursuant to this Act. Such assessment
shall be an amount equal to the actual costs of conducting all
reviews and investigations necessary for the Commission to
determine whether a license should be granted or denied to the
applicant.
`(c) Annual Budget:
`(1) In general: For the first full fiscal year beginning
after the date of enactment of the Indian Gaming Regulatory Act
Amendments Act of 1995, and each fiscal year thereafter, the
Commission shall adopt an annual budget for the expenses and
operation of the Commission.
`(2) Request for appropriations: The budget of the Commission
may include a request for appropriations authorized under
section 18.
`(3) Submission to congress: Notwithstanding any other
provision of law, a request for appropriations made pursuant to
paragraph (2) shall be submitted by the Commission directly to
the Congress beginning with the request for the first full
fiscal year beginning after the date of enactment of this Act,
and shall include the proposed annual budget of the Commission
and the estimated revenues to be derived from fees.
`SEC. 18. AUTHORIZATION OF APPROPRIATIONS.
`Subject to section 17, there are authorized to be appropriated
$5,000,000 to provide for the operation of the Commission for each
of fiscal years 1997, 1998, and 1999, to remain available until
expended.
`SEC. 19. MISCELLANEOUS.
`(a) Gaming Proscribed on Lands Acquired in Trust:
`(1) In general: Except as provided in paragraph (2), gaming
regulated by this Act shall not be conducted on lands acquired
by the Secretary in trust for the benefit of an Indian tribe
after the date of enactment of this Act, unless--
`(A) such lands are located within or contiguous to the
boundaries of the reservation of the Indian tribe on the
date of enactment of this Act;
`(B) the Indian tribe has no reservation on the date of
enactment of this Act and such lands are located in the
State of Oklahoma and--
`(i) are within the boundaries of the former
reservation of the Indian tribe, as defined by the
Secretary; or
`(ii) are contiguous to other land held in trust or
restricted status by the United States for the Indian
tribe in the State of Oklahoma; or
`(C) such lands are located in a State other than the
State of Oklahoma and are within the last recognized
reservation of the Indian tribe within the State within
which the Indian tribe is presently located.
`(2) Exemption for certain trust lands: Paragraph (1) does
not apply in any case in which--
`(A) the Secretary, after consultation with the Indian
tribe and a review of the recommendations, if any, of the
Governor of the State in which such lands are located, and
any other State and local officials, including officials of
other nearby Indian tribes, determines that a gaming
establishment on newly acquired lands--
`(i) would be in the best interest of the Indian
tribe and the members of the Indian tribe; and
`(ii) would not be detrimental to the surrounding
community;
`(B) lands are taken into trust as part of a settlement
of a land claim;
`(C) the initial reservation of an Indian tribe is
acknowledged by the Secretary under the Federal
acknowledgment process or by an Act of Congress; or
`(D) lands are restored for an Indian tribe that is
restored to Federal recognition.
`(3) Exemption: Paragraph (1) shall not apply to--
`(A) any lands involved in the trust petition of the St.
Croix Chippewa Indians of Wisconsin that is the subject of
the action filed in the United States District Court for
the District of Columbia entitled St. Croix Chippewa
Indians of Wisconsin v. United States, Civ. No. 86-2278; or
`(B) the interests of the Miccosukee Tribe of Indians of
Florida in approximately 25 contiguous acres of land, more
or less, in Dade County, Florida, located within 1 mile of
the intersection of State road numbered 27 (also known as
Krome Avenue) and the Tamiami Trail.
`(4) Authority of the secretary: Nothing in this section may
affect or diminish the authority and responsibility of the
Secretary to take land into trust.
`(b) Application of the Internal Revenue Code of 1986:
`(1) In general: The provisions of the Internal Revenue Code
of 1986 (including sections 1441, 3402(q), 6041, and chapter 35
of such Code) concerning the reporting and withholding of taxes
with respect to the winnings from gaming or wagering operations
shall apply to Indian gaming operations conducted pursuant to
this Act, or under a compact entered into under section 12 that
is in effect, in the same manner as such provisions apply to
State gaming and wagering operations. Any exemptions to States
with respect to taxation of such gaming or wagering operations
shall be allowed to Indian tribes.
`(2) Exemption: The provisions of section 6050I of the
Internal Revenue Code of 1986 shall apply to an Indian gaming
establishment that is not designated by the Secretary of the
Treasury as a financial institution pursuant to chapter 53 of
title 31, United States Code.
`(3) Statutory construction: This subsection shall apply
notwithstanding any other provision of law enacted before the
date of enactment of this Act unless such other provision of
law specifically cites this subsection.
`(c) Access to Information by State and Tribal Governments:
Subject to section 7(d), upon the request of a State or the
governing body of an Indian tribe, the Commission shall make
available any law enforcement information which it has obtained
pursuant to such section, unless otherwise prohibited by law, in
order to enable the State or the Indian tribe to carry out its
responsibil-
ities under this Act or any compact approved by the Secretary.';
(3) by striking section 20;
(4) by redesignating sections 21 through 24 as sections 20
through 23, respectively; and
(5) by adding at the end the following new section:
`SEC. 24. DEFINITION OF FINANCIAL INSTITUTIONS.
`Section 5312(a)(2) of title 31, United States Code, is amended--
`(1) by redesignating subparagraphs (X) and (Y) as
subparagraphs (Y) and (Z), respectively; and
`(2) by inserting after subparagraph (W) the following new
subparagraph:
`(X) an Indian gaming establishment;'.
SEC. 3. CONFORMING AMENDMENTS.
(a) Title 10: Section 2323a(e)(1) of title 10, United States
Code, is amended by striking `section 4(4) of the Indian Gaming
Regulatory Act (102 Stat. 2468; 25 U.S.C. 2703(4))' and inserting
`section 4(16) of the Indian Gaming Regulatory Act'.
(b) Title 18: Title 18, United States Code, is amended--
(1) in subsections (c) and (d) of section 1166, by striking
`section 11(d)(8) of the Indian Gaming Regulatory Act' each
place it appears and inserting `section 12(a)(2)(B) of the
Indian Gaming Regulatory Act';
(2) in section 1167--
(A) in subsection (a), by striking `National Indian
Gaming Commission' and inserting `Federal Indian Gaming
Regulatory Commission established under section 5 of the
Indian Gaming Regulatory Act'; and
(B) in subsection (b), by striking `National Indian
Gaming Commission' and inserting `Federal Indian Gaming
Regulatory Commission'; and
(3) in section 1168--
(A) in subsection (a), by striking `National Indian
Gaming Commission' and inserting `Federal Indian Gaming
Regulatory Commission established under section 5 of the
Indian Gaming Regulatory Act'; and
(B) in subsection (b), by striking `National Indian
Gaming Commission' and inserting `Federal Indian Gaming
Regulatory Commission'.
(c) Internal Revenue Code of 1986: Section 168(j)(4)(A)(iv) of
the Internal Revenue Code of 1986 is amended by striking `Indian
Regulatory Act' and inserting `Indian Gaming Regulatory Act'.
(d) Title 28: Title 28, United States Code, is amended--
(1) in section 3701(2)--
(A) by striking `section 4(5) of the Indian Gaming
Regulatory Act (25 U.S.C. 2703(5))' and inserting `section
4(17) of the Indian Gaming Regulatory Act'; and
(B) by striking `section 4(4) of such Act (25 U.S.C.
2703(4))' and inserting `section 4(16) of such Act'; and
(2) in section 3704(b), by striking `section 4(4) of the
Indian Gaming Regulatory Act' and inserting `section 4(16) of
the Indian Gaming Regulatory Act'.
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